The Hi media micropayment observatory 2010

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The Hi-media Micropayment Observatory, conducted by Harris Interactive, investigates how Internet users in Europe and the United States respond to and use micropayment. The Observatory’s findings confirm that:
- micropayment is used by an average of 40% of Internet users, whether European or American;
- it is much appreciated by users and enjoys a particularly positive image;
- among micropayment users, 74% of Europeans choose an alternative to bank cards as their means of payment for online purchases;
- micropayment is a particularly popular solution in the online music and games sectors;
- it has considerable growth potential, especially in the online news and information sector.

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The Hi media micropayment observatory 2010

  1. 1. The Hi-mediaMicropayment Observatory December 2010 © The Hi-media Micropayment Observatory
  2. 2. AgendaSection 1: Methodology Section 2: Micropayment: Awareness & Perception Section 3: Micropayment: Usages by Country Section 4: Micropayment: Focus on specific verticals: • Music • Online Games • Information Media Conclusion © The Hi-media Micropayment Observatory 2
  3. 3. Section 1Methodology © The Hi-media Micropayment Observatory 3
  4. 4. Methodology• The Observatory was conducted by Harris Interactive: Europe (France, UK, Germany, Spain) - US Country • 1000 respondents per country Sample size • Sample of the Internet users population aged 15 y.o. + for each country. • A representative sample was ensured using the quota method (gender, age, social class). Online quantitative CAWI survey Self-administrated questionnaire by email to members of the Harris Interactive Access Panel. Fieldwork dates August, 17-26, 2010 © The Hi-media Micropayment Observatory 4
  5. 5. Section 2Micropayment :Awareness & Perception © The Hi-media Micropayment Observatory 5
  6. 6. An awareness of 36% in Europe, higher than in the US• Significantly high in Spain and France.Question : Have you personally already heard the term “micropayment”?Base : total EUROPEAN Average 10% 10% 10% 4% 11% 10% 40% 36% 30% 43% 15% 19% Yes 20% 30% 25% 33% 26% 36% 81% 70% 61% 64% 64% 57% No, never Yes, but you don’t really know what it is Yes, and you know precisely what it is © The Hi-media Micropayment Observatory 6
  7. 7. An Awareness of 40% in France, led by 2 players• Allopass and PayPal are the first two players spontaneously mentioned by French micropayment users.• With 56% prompted awareness, Allopass ranked as the second micropayment solution mentioned. © The Hi-media Micropayment Observatory 7
  8. 8. Very good image for Micropayment Speed, Straightforwardness and Usefulness are the 3 key advantages of Micropayment across all countries.Question : What is your level of agreement regarding to micropayment solutions?(% of micropayment users that are agree are included in the table below)Base : users of micropayment Simples dutilisation Straightforward to use 79% 78% 87% 77% 74% 1 3 1 3 3 Un accès rapide aux contenus souhaités Rapid access to target content 2 79% 1 83% 2 87% 1 82% 1 85% Un accès à des contenus utiles Access to useful content 3 78% 2 81% 3 80% 2 82% 2 81% Une alternative fiable alternative to bank cards A reliable à la CB 70% 72% 67% 77% 68% Sûres pour Secure for the purchaser lutilisateur 66% 75% 76% 77% 68% Pas assez proposées surenough available on the Web Not widely Internet 55% 69% 69% 74% 61% Incitent à payer des contenus for content Encourages paying 54% 71% 38% 63% 72% © The Hi-media Micropayment Observatory 8
  9. 9. Majority of users would recommend Micropayment, especially in Spain More than 75% of European users and nearly 70% of US users would recommend it to their relativesQuestion All in all, would you definitely, probably, probably not or certainly not recommend to your relatives (family, friends, work colleagues) the use ofmicropayment solutions to access online paid services or online paid content?Base: users of micropayment I would definitely recommend I would recommend probably would recommend 14% 55% 69 % 19% 55% 74 % 18% 60% 78 % 32% 57% 89 % 15% 54% 69 %EUROPEAN Average (Yes) 76% 19% 57% © The Hi-media Micropayment Observatory 9
  10. 10. Current non-users express future intent to use 1/3 of non-users intend to use MicropaymentQuestion : In the future, do you envisage using micropayment services for accessing services or content/products on the Internet for an amount totalingunder £10/€10/$10 ?Base: non-users of micropayment Yes, certainly Yes, probably Intent to use 4% 37% 41 % 7% 31% 38 % 2% 34% 36 % 1% 20% 21% 2% 19% 21 %EUROPEAN Average (Yes) 33% 3% 30% © The Hi-media Micropayment Observatory 10
  11. 11. Section 3Micropayment:Usages by Country © The Hi-media Micropayment Observatory 11
  12. 12. On average, 40% of Internet users say they use Micropayment… commonly used in the UK (55%)Question : How often would you say you have personally used micropayments to pay for services or content/products over the Internet for an amounttotaling under €10/£10/$10 (online games, gambling websites, online music, newspaper articles, virtual currency, placing small ads...)?Base : total Very often Fairly often From time to time Rarely Total Internet users 4% 11% 20% 20% 55 % 3% 4% 14% 20% 41 % 2%2% 10% 20% 34 % 2% 10% 20% 33% 2% 4% 13% 20% 39% EUROPEAN Average (Yes) 40% © The Hi-media Micropayment Observatory 12
  13. 13. Types of Micropayment Methods74% of European micropayment users use another meanof payment to bank cards for their micropayment purchases. 87% 68% 68% 67% 40% EUROPEAN Average 74% © The Hi-media Micropayment Observatory 13
  14. 14. Types of Micropayment Methods France• More than 1/3 of users choose billing to a service provider(mobile phone, fixed line and ISP) • Note the widespread use of Premium SMS in France (35%), compared to other countries (24% in Europe on average) Bank card 69%Billing to a service provider (mobile phone, fixed line and ISP) 39% PSMS 35% Premium phone number 35% Internet+ 27% Mobile billing 13% 67% use another mean of payment than e-wallet 25% bank card Prepaid card 11% © The Hi-media Micropayment Observatory
  15. 15. Type of Content/Services Purchased • A variety of uses in every country • Music heads the listQuestion : You said you use online micropayment services. For which services or content/products on the Internet do you use these (available over theInternet and for a price under €10/£10/$10)?Base: users of micropayment Music 1 33% 1 55% 1 46% 1 43% 1 52% Online games 2 22% 2 18% 20% 2 24% 2 20% Videos 20% 12% 12% 19% 14% Classifieds 19% 13% 13% 20% 11% US Gambling games 18% 17% 13% 21% 5% Documents 16% 15% 2 22% 21% 8% Newspaper articles 12% 9% 17% 18% 6% Legal information 10% 10% 10% 14% 3% © The Hi-media Micropayment Observatory 15
  16. 16. Total Monthly Average Expenditure Strong differences between countries US consumers are the biggest spenders :Average expenditure per month $48 € 27,2 ₤ 19,8 € 17,8 € 16,6 EUROPEAN Average € 19,3 © The Hi-media Micropayment Observatory 16
  17. 17. Transaction Frequency Spanish consumers carry out the highest number of transactions : … France is lagging slightly behindAverage number of global transactions per month 9,9 9,9 9,1 8,2 7,4 5 EUROPEAN Average 8,0 © The Hi-media Micropayment Observatory 17
  18. 18. Payment Method used • Pay-per-view is the primary payment methodQuestion : And could you specify the payment method used to make your online transactions; did you pay per-view/per download or pay a subscription ?Base: Users of micropayment for each services or contents/products EUROPEAN average Pay-per-view/per download 92% 85% 92% 82% 85% 89% Subscription 16% 27% 14% 29% 27% 19% • whatever the country • whatever the content/service © The Hi-media Micropayment Observatory 18
  19. 19. Micropayment User Profile Micropayment users … …skew male …are primaryly between 15 - 34 years old (up to 39 in the US) …have a higher social …are more common in status in France municipalities of more(less pronounced divide than 200, 000 inhabitants in other countries) • no difference between countries © The Hi-media Micropayment Observatory 19
  20. 20. Micropayment: Section 4Focus on specific verticals: • Music • Online Games • Information Media © The Hi-media Micropayment Observatory 20
  21. 21. Digital Music:the most common content purchased via Micropayment Nearly Half (47%) of European users buy online Music English-speaking users are the largest consumers 55% 52% 46% 43% 33% EUROPEAN Average (Yes) 47%Base : users of Micropayment © The Hi-media Micropayment Observatory 21
  22. 22. France: 33% of buyers and 23% of potential buyers23% of French online users are willing to pay for Online Music % of online users who are willing to pay for online Music Base : Total Other 22% Yes No 55% 23% © The Hi-media Micropayment Observatory 22
  23. 23. Purchasing Methods Each age group has its own preferenceQuestion: Regarding music, can you tell us what phrase best describes your expectations for accessing online music (on yourmobile phone, mp3, computer ...)?Base : Total I prefer to pay a monthly subscription or a premium None of these subscription sentences suits 5% me 22% Im not willing I prefer to pay to pay for online per download music 18% 33% I prefer to listen to online music for free with advertising 22% © The Hi-media Micropayment Observatory 23
  24. 24. Micropayment: Section 4Focus on specific verticals: • Music • Online Games • Information Media © The Hi-media Micropayment Observatory 24
  25. 25. Online Games: 2nd most purchased category in Micropayment20% of European users buy Online Games: • with a monthly average frequency of 3.2 transactions • for a monthly average expenditure of €8 EUROPEAN Average Average number of global transactions/month 1,8 3,8 3,1 3,6 5,8 3,2 €8.0 Average expenditure/month €7.1 ₤8.5 €7.0 €10.3 $27.1 US users: more frequent spenders than EuropeansBase : utilisateurs © The Hi-media Micropayment Observatory 25
  26. 26. 22% of French users have bought Online Games … with varied purchased … essentially on a computer contents for an online game Device used for paid games Kind of content purchased for paid games 44% Download a game on a computer 94% Virtual currency, virtual 34% goods 21%on a mobile phone Online subscription to a 31% on a tablet/ ebook game (daily, weekly or 1%(iPad, Kindle, Sony monthly subscription) reader…) Premium/VIP account that allows you to advance in a 24% game with extra functionalities © The Hi-media Micropayment Observatory 26
  27. 27. Micropayment: Section 4Focus on specific verticals: • Music • Online Games • Information Media © The Hi-media Micropayment Observatory 27
  28. 28. 22% of Europeans are willing to pay for Online News & Information Spanish users are, by far, the most willing to pay for Online News & Information (36%)Question : Regarding online News & Information, are you willing to pay to access real time news (business, sports, cultural,international,… news)?Base : Total 36% ! 23% 21% 19% 17% EUROPE AN Average (Yes) 22% © The Hi-media Micropayment Observatory 28
  29. 29. 21% of French online users are willing to pay for Online News & Information The vast majority (57%), for an amount less than €3/monthQuestion : You mentioned that you may be prepared to pay to access to real time information. How much are you most willing topay per month?Base : France, users willing to pay for Online News & Information >€10/month betwen €6 and €10/month 5% 9% between €3 < €3/month and €5/month 29% 57% © The Hi-media Micropayment Observatory 29
  30. 30. ConclusionKey Findings © The Hi-media Micropayment Observatory 30
  31. 31. 7 points to note1 Micropayment is very appreciated by users and has a very good image: • Speed, Straightforwardness and Usefulness are the 3 key advantages of Micropayment whatever the country.2 The Micropayment solution is more popular as users become increasingly willing to recommend: • More than 75% of European micropayment users, and nearly 70% of American users recommend micropayment solutions to friends and family.3 With 56% of prompted awareness, Allopass distinguishes itself for French users and is ranked as the 2nd Micropayment solution in spontaneous and prompted awareness. © The Hi-media Micropayment Observatory 31
  32. 32. 7 points to note4 Micropayment is used on average by 40% of Internet users, whether European ou American.5 Among users of Micropayment, 74% of Europeans choose an alternative payment method to bank cards for their online purchases for an amount totaling under €10. © The Hi-media Micropayment Observatory 32
  33. 33. 7 points to note6 Micropayment is particularly popular among Internet users for online music and games: • Music heads the field: • 47% of European users and 52% of American users buy online music. • Followed by Online Games: • 20% of European and American users buy online games.7 Micropayment has potential for growth, particularly in online media information: • 22% of European internet users are willing to pay for online news & information. © The Hi-media Micropayment Observatory 33
  34. 34. For more information,please send us an email to: research@hi-media.com © The Hi-media Micropayment Observatory 34

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